Answer:
If an account is properly set up as a UTMA account, the funds belong to the child. Any garnishment you receive relating to the adult custodian (or whoever set up the account if that is someone different) should not affect the funds in the UTMA account.
Note, however, that the garnishor could pursue the funds by alleging that the UTMA is a sham and by showing that the funds are really being used for the benefit of the adult not the minor. That's an entirely separate matter, however, and would require a court proceeding and you would get an appropriate court order about what to do with the funds.
First published on BankersOnline.com 8/6/01
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